(Reuters) - Petaquilla Minerals Ltd PTQ.TO, a Canadian gold producer with operations in Panama, said on Monday its board unanimously rejected a C$109 million ($111.4 million) takeover offer from Inmet Mining Corp IMN.TO, saying it undervalued the company.
The board said Inmet's offer to acquire all outstanding shares of Petaquilla for 48 Canadian cents each did not reflect the target company's growth prospects.
The offer was a 37 percent premium to Petaquilla's closing share price on September 5, when Inmet announced plans for a bid. Since then, Petaquilla's shares have advanced 80 percent. On Monday, they were unchanged at 63 Canadian cents in Toronto.
Inmet, looking to expand in Panama with the acquisition of Petaquilla, made its offer last month and said the bid would remain open until November 5.
Vancouver-based Petaquilla operates a surface gold processing plant at its Molejon Gold Project in south-central Panama.
Toronto-based Inmet owns mining operations in Turkey, Spain and Finland. It has an 80 percent interest in a development property in Panama that is under construction.
UBS Securities Canada Inc is advising Petaquilla on the offer. ($1 = 0.9787 Canadian dollars) (Reporting By S. John Tilak; Editing by Gerald E. McCormick and John Wallace)